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Why Governments Don’t Get Startups

Steve Blank

Not understanding and agreeing what “Entrepreneur&# and “Startup” mean can sink an entire country’s entrepreneurial ecosystem. Who’s an entrepreneur? There are six distinct organizational paths for entrepreneurs: lifestyle business , small business, scalable startup, buyable startup, large company, and social entrepreneur.

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What type of capital should you raise, and from who?

David Teten

That said, venture capital is just one of many options to finance your business, and it’s typically the most expensive. The first step is to decide the right capital structure for your financing. SBA loans are available through SBA-approved banks and SBIC funds. A good resource for looking up SBICs is here.” .

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Should your new VC fund use Revenue-Based Investing?

David Teten

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. I explore the reasons for this in Why Are Revenue-Based Investors Investing in So Many Women & Diverse Entrepreneurs? . Potentially could use SBIC financing.

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The Secret History of Silicon Valley 12: The Rise of “Risk Capital.

Steve Blank

The Small Business Investment Company (SBIC) Act in 1958 guaranteed that for every dollar a bank or financial institution invested in a new company, the U.S. Like all government programs, the SBIC was fond of paperwork, but it began to formalize, professionalize and standardize the way investors evaluated risk.